Investing with Impact

A founder is driving the boat. A great idea can fail spectacularly with a bad founder at the helm. Also, history shows that major company pivots are far from rare. Consider character and integrity when you’re evaluating a founder and their team.

It’s invigorating to be around founders who work unbelievably hard to bring their ideas to life. Unfortunately, some founders can’t bear the stress of this endeavor. Seek out passionate, determined people who seem able to weather the storm.

There’s no way around it – failure is part of the angel investing experience. Most of your deals will probably fail, and that is a-okay. See each one as a learning opportunity for you to further hone your skills.

Disagreements and disputes between co-founders are huge red flags. Usually, one will end up having to go. You don’t want to get stuck as the divorce lawyer– note how they interact early on.

Consider yourself a strong networker? A LinkedIn savant? This could make you a really valuable asset to a growing company. Offer to connect founders with your contacts if they need help building out management teams. This also goes for building out production.

A founder who seems preoccupied with clout chasing rather than their metrics or user experience should send you running– as should any hint of procrastinator tendencies. A great founder will move quickly and with clarity.

When compiling your portfolio, know which sectors… you know! This expertise will allow you to better help founders.

Consider the success (and failure) rates of your investments and diversify accordingly! This is especially true for investors new to the game. Invest across multiple companies to give yourself more chances at success– putting all your eggs in one basket is extremely risky.

As mentioned in Class 5, the more you build out your network, the more you will be able to help founders and companies through your contacts. It’ll also allow for more deals to come down through the grapevine for you.

Using your power as an investor to help the community and be civilly engaged is seriously fulfilling. You have the power to back companies that provide solutions to problems you feel passionate about.